LegalAlso: Earnest money deposit, Arras contract

Contrato de arras

A preliminary sale contract with a deposit (often 10%) that binds both parties.

The contrato de arras is the preliminary contract by which buyer and seller commit to completing the sale, against payment of a deposit — most often 10% of the price. The most common form, the "arras penitenciales", lets either party pull out: the buyer by forfeiting their deposit, the seller by returning it twofold.

It is the pivotal step that takes the property off the market before the escritura is signed.

For the seller

Well drafted, the arras secure the sale and compensate you if the buyer walks away. The type of arras (penitenciales, confirmatorias, penales) radically changes your rights: have them properly framed.